Thursday 26th June 2008
In light of the current credit crunch and a squeeze on credit card rates, Sainsburys Credit Cards has been advocating the use of reward schemes, where customers are rewarded for using their cards.
With 83 per cent of consumers saying they expect to spend the same or less this summer as they did last due to feeling the pinch, card providers are looking to incentivise card holders with rewards every time they use their card.
Speaking of the Nectar reward scheme, Sainsburys Credit Cards head of cards Donald MacLeod said: "It will be [a pull] because there are a lot of rates out there and just about every card will have some introductory rate on it, but not all of them have rewards schemes attached to them ... we have both.
"Its moving it away from being a pure borrowing item … to actually being a transactional product thats rewarding you with every transaction."
The number of credit cards in the UK in 2007 totalled 30.8 million, enough for six out of ten UK residents to hold one.
©
Before choosing your credit card make sure you read the Know Your Money Credit Card guide.
Search and compare different credit cards and criteria with the
Know Your Money Credit Card Wizard.
